Tuesday, August 14, 2007

"VMware Inc. priced at the top of its range for its stock market debut Tuesday, as the software spin-off from EMC Corp. raised nearly $1 billion from tech-hungry investors."

"EMC, which acquired VMware in 2004 for $635 million, announced in February its plan to sell off 10 percent of VMware in an IPO. In June, VMware estimated the IPO price range at $23-$25 per share, but it raised that last week to between $27 and $29.

VMware provides virtualization software, which creates multiple logical servers in one physical server, increasing the utilization rate of servers. Virtualization is also being applied to storage, networks and desktop computers. "

Ouch, venture investors must be feeling a world of pain for selling VMW that early.